The Incannex Healthcare Ltd (ASX: IHL) share price won't be going anywhere on Tuesday.
This comes as the company requested that its shares be placed in a trading halt.
At the time of writing, the medicinal cannabis company's shares are frozen at 70 cents apiece.
Image source: Getty Images
Why is the Incannex share price halted?
At market open, the company requested trading in its shares be halted while it prepared an announcement.
According to the release, the company is planning to make an announcement regarding a potential business acquisition transaction.
At this stage, the details remain unknown as to which company is subject to a possible takeover.
Incannex has requested that the trading halt remains in place until Thursday 24 March or following the release of the announcement, whichever comes first.
What does Incannex do?
Founded in 2001, Incannex is a clinical-stage pharmaceutical company developing novel medicinal cannabinoid compounds and psychedelic therapies for unmet needs.
This includes treatment of generalised anxiety disorder (GAD), obstructive sleep apnoea (OSA), traumatic brain injury (TBI)/concussion, lung inflammation (ARDS, COPD, asthma, bronchitis), rheumatoid arthritis, and inflammatory bowel disease.
Currently, the company is pursuing United States Food and Drug Administration (FDA) approval of all its drug candidates.
Once approved, Incannex is seeking to expand its products in other regions such as Europe, Japan, Australia, and Israel.
Incannex share price summary
Over the past 12 months, the Incannex share price has surged by more than 230% following its IHL-42X positive phase 2 clinical trial results.
Although, since the start of the year, its shares have recorded wild swings of more than 40% in either direction.
The company's shares are up 12% in 2022.
Based on valuation grounds, Incannex has a market capitalisation of roughly $847 million, with approximately 1.2 billion shares outstanding.
